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Irish Mep Hits The Nail On The Head

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I suppose the upside of an Irish default is the rest of us will be able to see if that approach works or not.

And since it seems more and more like the Irish people want to default, the sooner they just get on and do it the better.

If they do at least they'll stop blaming everyone else.

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I guess they'll say pension companies are forced to hold a certain number of government bonds, so your pension will take a hit. Or something like that.

I would suspect the pension funds would be wiped out as they hold 200% of GDP in the PIIGS economies which they would lose through default/seizure.

What the Irish will like to forget is that the bailouts in other countries protect Irish investors.

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I suppose the upside of an Irish default is the rest of us will be able to see if that approach works or not.

We will have no option, everybody else will default.

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Same argument that Greg Pytel has been making.

Good to see an MEP speaking the truth for a change. More power to him. I'll watch the Irish election closely to see if his party increase their share of the vote. ;)

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I suppose the upside of an Irish default is the rest of us will be able to see if that approach works or not.

Is it possible to default on a debt you did not take on in the first place?

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I would suspect the pension funds would be wiped out as they hold 200% of GDP in the PIIGS economies which they would lose through default/seizure.

What the Irish will like to forget is that the bailouts in other countries protect Irish investors.

All pensions are worthless anyway.

The money won't be their when everyone else retires.

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What the Irish will like to forget is that the bailouts in other countries protect Irish investors.

And there lies one of the major bugbears for me.

As I see it, when there is a crash in any market, investors in that market should suffer. They should not be protected.

If I choose,or am forced to choose through lack of spare cash, not to invest in anything the main benefit to me is that I can't lose anything.

That's the theory anyway.

But I find that I and all the other non investors seem to be losing more that the "investors".

Default and bugger the consequences. That's what I say!

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Irish Socialist Party. I spend a fair amount of time over there and he is the only decent politician they have IMO.

Careful of what you wish for, and all that - same with consequences of default.

Just been told that Sinn Fein is expected to win more seats than Fianna Fail. We mightn't have had free markets up till now, but we'll have less with those guys pulling the strings.

Default has to be orderly, so I guess we'll end up with compromise.

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Just been told that Sinn Fein is expected to win more seats than Fianna Fail. We mightn't have had free markets up till now, but we'll have less with those guys pulling the strings.

The EU runs Ireland now so it does not matter who wins the Election. :rolleyes:

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Excellent speech and excellent article.

I don't know which Party he is in - but if it's (Irish) Labour, looks like they might fight on a manifesto of 'Default' along with Sinn Fein.

For sure he wasn't Irish Labour, they threatened a motion of no confidence against the goverment unless the bailout was rushed through!

The Irish government and opposition have agreed a timetable on passing a vital finance bill.

Finance Minister Brian Lenihan said he expected the bill, a condition of Ireland's international bail-out, to be passed by Saturday.

Under the terms of the deal, parliament would be dissolved next week and elections could be held on 25 February.

Prime Minister Brian Cowen's majority in parliament collapsed on Sunday when the Green party quit his coalition.

That capped a disastrous week for Mr Cowen, in which eight of his ministers resigned and he himself stepped down as leader of his party, Fianna Fail.

Mr Lenihan chaired Monday's talks with his counterparts from the Greens, Fine Gael, Labour and Sinn Fein, after Labour threatened to bring a motion of no confidence against the government if the finance bill was not fast-tracked through the Dail (parliament).

The opposition were also calling for parliament to be dissolved by the end of the week, and a general election to be held in February, sooner than the 11 March date set by the government.

'Good day's work'

"I believe it will be extremely likely now that the next general election will be held on Friday, Feb 25," the opposition Labour's finance spokeswoman Joan Burton told reporters after the meeting.

Pearse Doherty of Sinn Fein called the agreement a "grubby little deal" because it avoided an immediate general election.

The opposition threat of a no-confidence motion remains if the accelerated timetable for passing the bill is not met but Ms Burton said that was "unlikely".

It has been a disastrous week for Prime Minister Brian Cowen "I think it's a good day's work," Mr Lenihan told the national broadcaster RTE after the meeting. "I think it's important for the country that we are seen to unite at least in dealing with this measure."

The Finance Bill will raise income taxes and close tax-dodging loopholes, and it is the final legislative commitment that Ireland must pass as part of its 80.5bn euro EU/IMF bailout package.

A spokesman for EU Economic Affairs Commissioner Olli Rehn said it was "crucial" for Ireland's stability and credibility that Ireland passes its finance bill before new elections.

There is widespread speculation that Mr Cowen's government will be the first to fall victim to the eurozone debt crisis in the election.

The party has to find a leader to replace Mr Cowen and somehow win support back from voters disgruntled by the economic downturn and cutbacks.

Nominations for the Fianna Fail leadership closed on Monday and a vote is expected on Wednesday.

The frontrunner is former foreign minister Micheal Martin, with Brian Lenihan the bookmakers' second choice.

Social protection minister Eamon O Cuiv and Sports Minister Mary Hanafin are also running.

Linky

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And there lies one of the major bugbears for me.

As I see it, when there is a crash in any market, investors in that market should suffer. They should not be protected.

If I choose,or am forced to choose through lack of spare cash, not to invest in anything the main benefit to me is that I can't lose anything.

That's the theory anyway.

But I find that I and all the other non investors seem to be losing more that the "investors".

Default and bugger the consequences. That's what I say!

Just remember, when you default, you lose all your lending as well, which in Irelands case its several times GDP.

Whats not immediately obvious is that the vendors you defaulted on have a way of getting their money back - they charge you a risk premium for future borrowing that will return them the defaulted money over time, and then some.

Its not like personal bankruptcy where you can walk away form the debt.

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Last seen on a hill walking holiday! laugh.gif

And you think it's a laughing matter?

"The Wicklow Mountains, it is said, would be ten feet lower if not for all the bodies buried up there."

http://www.independe...ins-137345.html

Edited by erranta

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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